In-brief analysis
January 7, 2026
The U.S. retail price for regular grade gasoline averaged $3.10 per gallon (gal) in 2025, $0.21/gal less than in 2024. This year marks the third consecutive year of declining nominal retail gasoline prices, according to data from our Gasoline and Diesel Fuel Update.
Crude oil prices are the largest component of U.S. gasoline prices. U.S. gasoline prices fell in 2025 because of lower crude oil prices, which were driven by oversupply concerns and a weaker global economic outlook in the first half of the year that dampened demand.
U.S. retail gasoline prices have fallen every year since 2022, when prices spiked to their highest since 2014 when adjusted for inflation after petroleum product prices increased sharply following Russia’s full-scale invasion of Ukraine.
The retail gasoline price was highest in 2025 in early April when it reached $3.24/gal, still less than 2024’s high price of $3.67/gal, also reached in April. Similar to 2024, the 2025 high price preceded the summer driving season, which is when gasoline use peaks in the United States and often sets the highest prices of the year. Summer prices were relatively lower for gasoline and other petroleum products because of lower crude oil prices through the second half of the year. Retail gasoline prices decreased to an annual low of $2.81/gal in late December, as low crude oil prices combined with declining crack spreads at the end of November.
U.S. gasoline consumption in 2025 decreased on an annual average basis by less than 1% from 2024. Despite slightly lower consumption, a small increase in net exports in 2025 contributed to similar inventory levels as 2024. In 2025, Memorial Day gasoline prices, which signal the start of the summer driving season, were their lowest since 2020, when adjusted for inflation.
After the 2025 summer season, tightness in the global refining sector caused gasoline prices to increase just above their 2024 levels for September—the first month in which that happened this year. This relative tightness persisted through October and November, as higher refining margins led to gasoline prices that were about equal to 2024 prices going into Thanksgiving.
U.S. gasoline prices vary regionally, reflecting local supply and demand conditions and differences in state fuel specifications and taxes. The annual average retail price for regular grade gasoline in 2025 ranged from a low of $2.39/gal on the Gulf Coast to a high of $4.32/gal on the West Coast.
U.S. gasoline prices were lower on average in 2025 than in 2024 in all regions, with the largest decrease on the East Coast—the largest gasoline consuming region by volume—where retail prices averaged $0.25/gal lower.
Principal contributor: Kevin Hack
